Santander ISA 2.30% 2-year fixed for 123 current account or credit card customers
284°Expired

Santander ISA 2.30% 2-year fixed for 123 current account or credit card customers

75
Found 10th Mar 2014
ISA season is nearly upon us again, and this is the best I've seen so far.

* An offer for 123 Current Account, 123 Credit Card or Santander Select customers.
* Minimum opening deposit of £500 required.You can open the account with a zero balance if you are transferring in existing cash ISAs with a balance of at least £500.
* Partial withdrawals are not allowed.
* On early closure, a charge equivalent to 120 days' interest will be applied.

* Save from £500 up to the annual cash ISA limit. You can open the account with a zero balance if you are transferring in existing cash ISAs with a balance of at least £500.
* Deposits for 2013/14 tax year can be made up to and including 5 April 2014 and deposits for 2014/2015 tax year can be made up to and including 31 May 2014. No subsequent additional deposits allowed.
* Access to funds will be allowed on account closure only subject to an early closure charge equivalent to 120 days' interest.

If you are not a 123 customer, they are also offering a 2.00% rate instead, under the same terms as above.

75 Comments

Feels weird voting a 2.3% interest rate hot but you're right good option atm lol.

Awrful rate .....best at the moment

link does not seem to be working for me

Doesn't the 123 current account offer 3% interest? you can have 2 of them so you could get 3% on £40k if you had it.

im with Santander sure it was 3% last year can some one confirm thanks?

norville555

Doesn't the 123 current account offer 3% interest? you can have 2 of them … Doesn't the 123 current account offer 3% interest? you can have 2 of them so you could get 3% on £40k if you had it.


No income tax payable on the ISA interest but fully payable on the interest on the £40k in your current account.

Edited by: "Dave-T" 10th Mar 2014

norville555

Doesn't the 123 current account offer 3% interest? you can have 2 of them … Doesn't the 123 current account offer 3% interest? you can have 2 of them so you could get 3% on £40k if you had it.

...and if you have over £40k?! Also ISA attracts no tax indefinitely and you can only use your allowance within the tax year. Santander can also pull 3% on current account ... I hope not though.

Original Poster

chigger1

Awrful rate .....best at the moment


Indeed :-(

Still, at least it's slightly above the current CPI inflation rate ~2%, so shouldn't be losing money in real terms.

The 123 current account would give you 2.4% after basic rate tax, so yes slightly better. However, if you have existing ISAs from previous years to transfer, not much else choice (excluding investments).

leoncub

Indeed :-(Still, at least it's slightly above the current CPI inflation … Indeed :-(Still, at least it's slightly above the current CPI inflation rate ~2%, so shouldn't be losing money in real terms.The 123 current account would give you 2.4% after basic rate tax, so yes slightly better. However, if you have existing ISAs from previous years to transfer, not much else choice (excluding investments).

Good point about accepting transfers in. I have the problem of fixed rate ISAs maturing this year at different dates which I am not sure this account can cope with unfortunately.

the badger

im with Santander sure it was 3% last year can some one confirm thanks?


If you took out the 2 year fixed last year (2013) I believe it was 2.8%.
I'm wondering if you be able to add the 2014 allowance to the 2013 account

Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?

I'm wondering if you be able to add the 2014 allowance to the 2013 account


That won't be possible.....unfortunately.
This account seems to be the best around at the moment......but it's early days yet, so the other banks may have something to offer soon. There seems to be an increasing expectation on the BoE to raise the rate which they have resisted so far - but 2 years on.....may be difficult to maintain 0.5%

They say next year possibly don't they? And they say it will probably only rise 0.25%! But if 1 year ISA is paying 1.8% they would need to put rates up by slightly over 1% next year to make it comparable to this 2.3%.
Edited by: "redhot999" 10th Mar 2014

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?



I like it, so long as you have a few direct debits to use which qualify for the cashback then that pays the £2 monthly fee. I think most people who use it as their main current account end up making a few pounds a year from the cashback. 3% interest too which is pretty good.

Before you apply have a look at TCB or quidco as there is usually an offer, I got £55 from TCB for opening a 123 account.

Good deal. Santander are now the second
best bank for customer satisfaction.

redhot999

They say next year possibly don't they? And they say it will probably … They say next year possibly don't they? And they say it will probably only rise 0.25%! But if 1 year ISA is paying 1.8% they would need to put rates up by slightly over 1% next year to make it comparable to this 2.3%.

You're right of course :-) However, once rate begins to increase, however small the increase may be, we'll see better rates for longer term fixed rate isa's as the expectation of falling / stagnant rates disappears.

gluke21

Good deal. Santander are now the secondbest bank for customer … Good deal. Santander are now the secondbest bank for customer satisfaction.


No mean feat, when you consider where they were a year ago !!

djk

You're right of course :-) However, once rate begins to increase, … You're right of course :-) However, once rate begins to increase, however small the increase may be, we'll see better rates for longer term fixed rate isa's as the expectation of falling / stagnant rates disappears.

True of course. I was just looking at the situation of accessing funds in 2 years time.

Why are people voting cold? Maybe coz it's not an ipad

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?


Have 123 Account and very pleased with it. There's a £2 / month fee which you more than get back from direct debits (must have at least 2 to qualify for interest). Also to get interest you must fund it with at least £500/month and you only get 1% interest on balances £1000 - £2000, 2% on £2000 to £3000 - the 3% doesn't kick in till you have over £3000 and you only get it up to £20,000

crumpetman

I like it, so long as you have a few direct debits to use which qualify … I like it, so long as you have a few direct debits to use which qualify for the cashback then that pays the £2 monthly fee. I think most people who use it as their main current account end up making a few pounds a year from the cashback. 3% interest too which is pretty good.thanks for that Before you apply have a look at TCB or quidco as there is usually an offer, I got £55 from TCB for opening a 123 account.

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?


I changed my a/c from Nat west in September and today my husband has changed his also from Nat west, been with them for over 40 years, don't know why we have been so loyal to them, when their isa dropped to 1.50% for balances over £25000 it was time to jump ship. I get about £49 per month interest plus the cash back on my direct debits which is always more than the £2 fee, (now it will be x 2) Wish we had done it when it first came out.


Before you apply have a look at TCB or quidco as there is usually an offer, I got £55 from TCB for opening a 123 account.[/quote]

When I opened a 123 account 2 months ago tcb/quidco cashback was only for switching not if you want to keep your other bank account (couldn't close as we're on an offset mortgage) . Had to sort out switching dds myself which wasn't that bad.

I may have been lucky with the quidco as I did not use the switching service, I definitely got the £55 though!

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?



Yeah it's great. We get free money every month. What's not to like??

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?



I had been with HSBC for 20 years or so but didn't get anything from it (no cashback, no interest etc) and took the plunge to switch last month. Initially nervous about doing it, but the whole process went through very smoothly within the given timeframe with no hassle at all. Best move I ever made as our mortgage is with Santander, plus cashback on Virgin, water, Council Tax etc. Their ISA rate works out the same as the 123 account after tax - asked the question today.

Banned

gone for 2% @ halifax fixed for 18 months
Edited by: "4cx250f" 1st Apr 2014

I got Quidco back on my 123 application, even though I didn't use the switching service it said I needed to use to qualify.

Personally I'd rather take a lower rate and not suffer salamanders catalogue of errors....

Ashe

I got Quidco back on my 123 application, even though I didn't use the … I got Quidco back on my 123 application, even though I didn't use the switching service it said I needed to use to qualify.



If you are opening two, use Quidco and TCB they do pay out just for opening the account and not using the switching service ie internal switch from the ordinary Santander Current Account.


perkin

Personally I'd rather take a lower rate and not suffer salamanders … Personally I'd rather take a lower rate and not suffer salamanders catalogue of errors....



Santander are one of the best banks around for rates on savings/ISA's and Current Accounts and their Customer Service has improved a lot over the past year or so, I would recommend.

po57405k

Has anyone got a Santander account? Is this 1,2,3 account all it's … Has anyone got a Santander account? Is this 1,2,3 account all it's cracked up to be? I'm thinking of changing from Barclays, any thoughts?



I have been with Barclays for nearly 30 years but I opened up the 123 accounts and moved over direct debits to qualify. It's a good service overall and easy to manage online. I also managed to get the £55 quidco too for opening online.

Seems like this ISA is the best of the bunch at the moment.....

pop5

Have 123 Account and very pleased with it. There's a £2 / month fee which … Have 123 Account and very pleased with it. There's a £2 / month fee which you more than get back from direct debits (must have at least 2 to qualify for interest). Also to get interest you must fund it with ast least £500/month and you only get 1% interest on balances £1000 - £2000, 2% on £2000 to £3000 - the 3% doesn't kick in till you have over £3000 and you only get it up to £20,000



To point out as well, the £500 that needs to be funded every month can be withdrawn immediately so it can be transferred from one bank account to another, just saying this in case people put in their £20k (as that is the maximum for the 3%) and keep funds elsewhere for interest (although I know there is not much of that around at the moment).

perkin

Personally I'd rather take a lower rate and not suffer salamanders … Personally I'd rather take a lower rate and not suffer salamanders catalogue of errors....


Talk about give a dog a bad name. That's your opinion, but we've earned well over a £1000.00 in interest and cashback over the two 123 accounts we've had since January last year. That's no mean feat for a current account in this day and age. Plus, that's not even counting the cashback received on their 123 credit card. No problem with Santander here.

edit: The only regrets I have is delaying going for it a lot sooner because of the negative comments - like yours. We missed out on about 9 months worth of interest because of it.
Edited by: "jans" 1st Apr 2014

perkin

Personally I'd rather take a lower rate and not suffer salamanders … Personally I'd rather take a lower rate and not suffer salamanders catalogue of errors....



Personally I'm happy, changed to 123, just over a year ago, so far I've accumulated over £455 in bonus money, quite happy to accept a risk they may occasionally be lacking in the customer service department for that. Over 20 years of having a Smile account, total interest for that time couldn't come close.

mike

I don't get why people are putting their money into accounts that basically get them no cash. Put it into a stocks and shares ISA - open up some funds.

chamelion

I don't get why people are putting their money into accounts that … I don't get why people are putting their money into accounts that basically get them no cash. Put it into a stocks and shares ISA - open up some funds.



Share have a risk of going down.

All depends on your risk appetite on wealth preservation versus wealth creation.

norville555

Doesn't the 123 current account offer 3% interest? you can have 2 of them … Doesn't the 123 current account offer 3% interest? you can have 2 of them so you could get 3% on £40k if you had it.



We can have three if we wish a joint account and two individuals. Haven't gone down that road. I opened a 123 but kept my main current account with Nationwide going as I have other benefits with that account.

it's upto 20k you can keep in your current account (for interest)

regarding this deal not voting as i don't think you should lock your money away at such a low rate... interest rates will rise.

My 2 year ISA with Santander is maturing soon. It paid 4.1% coz good ol' Rory won the open. Now that's more like it. Mind you they're offering 1% after it matures X)

If you have a mortgage that takes overpayments, for most people that's the better option right now. We're getting 2.99% at the moment and can draw the money out at will.
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